The Khyber Pakhtunkhwa government is considering legalising cannabis cultivation and regulating it through a formal licensing framework.

A proposal being considered by the authorities includes the issuance of regular licences for cultivation, along with the imposition of licence fees and excise duty.

Issues related to cannabis status matters were discussed in a meeting presided over by Director General Excise and Taxation Abdul Haleem Khan in Peshawar, where a working group was formed to finalise documentation requirements and the overall licensing structure.

Members of a sub-committee reviewed various licence rates, issuance procedures and licence durations.

The sub-committee proposed a licence fee of Rs600,000 for cultivating cannabis on up to five acres for medicinal use.

It was also recommended that excise duty on the cultivation and transportation of cannabis be abolished.

Officials stated that the Excise Department, in coordination with district administrations, would closely monitor the cultivation and processing of cannabis.

Industries granted licences will be responsible for seed registration, certification and other matters related to the federal government.

DG Excise Abdul Haleem Khan said that cannabis is used in the production of medicines, CBD oil and pharmaceutical products by various industries.

He stated that in the first phase, the government is seeking approval for cannabis cultivation and introducing it as an alternative crop in Orakzai and Khyber districts.

In the second phase, the issuance of licences for cannabis cultivation will be considered.

He stressed that licences would be issued after a thorough scrutiny in accordance with all prescribed protocols, and that large pharmaceutical companies would be given priority for licensing.

The meeting also proposed involving law enforcement agencies to ensure security and effective monitoring, particularly in the Khyber district.